Walmart adding free next-day delivery

BENTONVILLE, Ark. — Walmart will begin offering free next-day delivery in select markets this week, with more markets to be added later this year. The move will raise the stakes in its battle with online retailer Amazon.com, which said earlier this month that next-day shipping will soon become standard for members of its Prime membership program, which costs $119 per year. Walmart says customers will not have to pay a membership fee to take advantage of its free next day shipping offer.

“NextDay delivery will be available first to Walmart.com customers in Phoenix and Las Vegas, and will expand to Southern California in the coming days,” Marc Lore, president and CEO of Walmart eCommerce U.S., wrote Tuesday in a post on the retailer’s web site. “It will roll out gradually over the coming months, with a plan to reach approximately 75% of the U.S. population this year, which includes 40 of the top 50 major U.S. metro areas.

“Walmart’s NextDay delivery offers a stand-alone, curated shopping experience where customers can browse up to 220,000 of the items most frequently purchased, ranging from diapers and laundry detergent to toys and electronics, with more assortment to be added. It is available on eligible orders of $35 or more, with the specific assortment varying by customer location.”

Lore said that Walmart could afford to offer the new shipping program because eligible items will be shipped from a single local fulfillment center, usually in one box, and will travel a shorter distance than the online orders shipped by most competitors. That will keep costs down, he said.

“We can offer fast, convenient shipping options because we’ve built a network of fulfillment assets that are strategically located across the U.S.,” Lore said. “We’ve also done extensive work to ensure we have the right products in the right fulfillment centers based on where customers are located and what they’re ordering.”

Lore said that the new next-day shipping offer will complement Walmart’s other options for consumers to get their online orders quickly, including same-day grocery pickup and delivery from its stores, and free two-day shipping that is available on millions of items.

“And with 90% of Americans living within 10 miles of a Walmart store, we’re well positioned to offer even faster delivery to customers in the future,” Lore said.